Note 15: Employee Benefits

We sponsor a 401(k) defined contribution savings plan. The plan covers all employees who have completed one year of service and have attained the age of 21. The plan is subject to the Employee Retirement Income Security Act of 1974, as amended. This plan permits participants to make before or after-tax contributions in an amount not exceeding 90% of eligible compensation and subject to dollar limits from Internal Revenue Service regulations. We will make an annual nonelective contribution of 3% of eligible compensation. We made contributions of $1.0 million and $0.7 million in 2013 and 2012, respectively.

Stock Options – We recorded no share-based compensation expense with respect to stock options for the years ended December 31, 2013 and 2012. The share-based compensation is calculated using the accrual method, which treats each vesting tranche as a separate award and amortizes expense evenly from grant date to vest date for each tranche. The amortization of stock-based compensation reflects actual forfeitures, and as of December 31, 2013, there was no unrecognized compensation expense. The deferred tax asset that was recorded related to this compensation expense was approximately $0 for tax years 2013 and 2012 and $92,000 for tax year 2011.

We have computed the estimated fair values of all share-based compensation using the Black-Scholes option pricing model. No options were granted in 2013, 2012, or in 2011.

A summary of option activity under the Stock Plans as of December 31, 2013 and changes during the three-year period then ended is presented below.


				Weighted
		Weighted		Average Aggregate
		Average		Remaining	Intrinsic
	Number of	Exercise		Contractual	Value (dollars
	Options	Price		Life (Years)	in thousands)
Outstanding at December 31, 2010	202,215	$	24.00
Granted	-		-
Exercised	-		-
Canceled/expired	(128,401)		23.59
Outstanding at December 31, 2011	73,814	$	24.72
Granted	-		-
Exercised	-		-
Canceled/expired	(68,814)		25.28
Outstanding at December 31, 2012	5,000	$	16.93
Granted	-		-
Exercised	-		-
Canceled/expired	(5,000)		16.93
Outstanding at December 31, 2013	-	$	-	-	-

Total exercisable at December 31, 2011	73,814	$	24.72
Total exercisable at December 31, 2012	5,000	$	16.93
Total exercisable at December 31, 2013	-	$	-		-

No stock options were exercised in 2013, 2012 and 2011.

Restricted Stock - Restricted shares granted as of December 31, 2013, 2012 and 2011 was 401,844, 200,798, and 120,298, respectively. We recognized $0.7 million for the year ended December 31, 2013 and $0.1 million for the year ended December 31, 2012 and $0.2 million for the year ended December 31, 2011, in compensation expense, net of tax, related to all restricted shares outstanding. At December 31, 2013, there was $0.7 million of total unrecognized compensation expense related to restricted shares granted under the 2008 Stock Plan. Of the total unrecognized compensation expense at December 31, 2013, $0.4 million will be recognized in 2014, and the remainder will be recognized the following three years.

The 2013 and 2012 grants of restricted stock have a vesting period between six months to 3 years. The restrictions on the shares expire one year after the award date or upon a change in control of us (subject to the prohibition on parachute payments imposed by the American Reinvestment and Recovery Act) or the permanent and total disability or death of the participant. We recognize compensation expense over the restricted period.